Cullen/frost Bankers Stock Earnings Reports

Cullen/Frost reported strong Q3 2025 results: net earnings of $172.7 million ($2.67/share), up 19.2% y/y, with ROA 1.32% and ROTCE 16.72%. Average deposits were $42.1B (up 3.3% y/y) and average loans $21.5B (up 6.8% y/y). Organic expansion is a key driver — expansion deposits and loans were $2.9B and $2.1B respectively, with ~74,000 new households added. Consumer banking (checking growth and record mortgage originations) and commercial pipelines were strong; weighted pipeline ended the quarter at $1.9B (up 20% q/q). Credit trends improved: NPAs fell to $47M, net charge-offs were $6.6M (annualized 12 bps), and problem loans declined materially after multifamily resolutions. NIM was 3.69% (up 2 bps q/q), helped by mix shifts and higher-yield municipals; investment portfolio and duration remain sizable (portfolio avg ~$20.2B, duration ~5.4 years). Management repurchased $69.3M of stock in Q3 under a $150M plan. Guidance assumptions include one 25 bp Fed cut in December; management now expects full-year net interest income growth of 7–8% (was 6–7%), NIM to improve ~12–15 bps over 2024, average loan growth 6.5–7.5%, deposits up 2.5–3.5%, noninterest income growth 6.5–7.5%, noninterest expense growth 8–9%, and full-year net charge-offs of 15–20 bps. Management remains focused on continued organic expansion, expense discipline (targeting a glide path from high-single-digit expense growth toward mid-single digits), and maintaining credit quality amid market competition.